TSX Ends At All-Time High On Mining, Financial Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks moved up for a fifth straight session to end at an all-time high on Wednesday, driven by strength in mining and financial stocks after some upbeat economic data from the U.S. with private jobs in the world's largest economy rising more than expected in June.

Investors also weighed Fed Chairman Janet Yellen's outlook on the economy at the International Monetary Fund in Washington, D.C. Wednesday morning. Yellen said the primary focus of the Federal Reserve must remain on price stability and maximum employment rather than a stable banking system. She also stressed the importance of regulation and adequate capital requirements which would be more appropriate than monetary policy in curbing excesses within the financial sector.

Private sector employment in the U.S. increased by much more than anticipated in June -- the biggest monthly increase in employment since November of 2012, a report from payroll processor ADP showed Wednesday. Meanwhile, new orders for U.S. manufactured goods fell more than expected in May, due partly to a sharp pullback in orders for transportation equipment, according to a Commerce Department report.

The S&P/TSX Composite Index closed Monday at 15,209.79, up 63.78 points or 0.42 percent. The index scaled an all-time intraday high of 15,223.04 and a low of 15,146.01. This is an all-time high closing for the index, surpassing the previous best of 15,154.77, recorded on June 6, 2008.

The Diversified Metals & Mining Index surged 3.85 percent, with Lundin Mining Corp. (LUN.TO) jumping 3.75 percent, Teck Resources Limited (TCK.B.TO) gathered 4.27 percent, and First Quantum Minerals Ltd. (FM.TO) was up 2.94 percent.

Capstone Mining Corp. (CS.TO) soared 11.28 percent, Turquoise Hill Resources Ltd. (TRQ.TO) added 2.24 percent, HudBay Minerals Inc. (HBM.TO) jumped 4.15 percent, and Sherritt International Corporation (S.TO) surged 7.87 percent.

The Financial Index added 0.54 percent with Toronto-Dominion Bank up 0.24 percent, National Bank of Canada (NA.TO) up 0.38 percent, Bank of Nova Scotia (BNS.TO) up 0.28 percent, and Royal Bank of Canada (RY.TO) added 0.96 percent. Manulife Financial Corp. (MFC.TO) gained 1.04 percent.

Crude oil futures slipped for a fifth day after news reports said Libya will reopen at least two terminals that handles almost 50 percent of the country's oil shipments and on some upbeat private jobs data from the U.S.

Nonetheless, a report from the U.S. Energy Information Administration showed U.S. crude oil inventories to have dropped 3.2 million barrels in the week ended June 27, with analysts anticipating a decline of 2.0 million barrels. Gasoline stocks declined 1.2 million barrels last week, while analysts anticipated an increase of 0.4 million barrels.

The Energy Index gained 0.30 percent, although U.S. crude oil futures for August delivery, the most actively traded contract, dropped $0.86 or 0.8 percent to close at $104.48 a barrel Wednnesday on the Nymex.

Among energy stocks, Canadian Natural Resources Ltd. (CNQ.TO) moved up 0.08 percent, Talisman Energy Inc. (TLM.TO) edged down 0.80 percent, Suncor Energy Inc.(SU.TO) gained 0.92 percent, and Cenovus Energy Inc. (CVE.TO) added 0.14 percent. Encana Corp. (ECA.TO) surrendered 1.66 percent.

The Capped Healthcare Index rose 0.26 percent with Valeant Pharmaceuticals International, Inc. (VRX.TO) shedding 0.30 percent and Catamaran Corp. (CCT.TO) edging up 0.68 percent

The Global Gold Index added 0.20 percent, with gold futures for August delivery gaining $4.30 or 0.3 percent to close at $1,330.90 an ounce Wednesday on the Nymex.

Among gold stocks, Eldorado Gold Corp. (ELD.TO) dropped 0.37 percent, B2Gold Corp. (BTO.TO) slipped 0.96 percent, Yamana Gold Inc. (YRI.TO) added 0.91 percent, Kinross Gold Corp. (K.TO) jumped 3.39 percent, and Barrick Gold Corp. (ABX.TO) up 0.15 percent.

The Capped Materials Index gained 0.63 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) edging down 0.44 percent.

The Information Technology Index gained 1.21 percent, with BlackBerry Limited (BB.TO) jumping 4.11 percent. CGI Group Inc. (GIB.A.TO) added 1.53 percent, Open Text Corporation (OTC.TO) gained 1.68 percent, and Constellation Software Inc. (CSU.TO) dipped 2.10 percent.

The Capped Industrials Index moved up 0.54 percent, with Bombardier Inc. (BBD.B.TO) gaining 0.80 percent. The company's unit, Bombardier Aerospace, on Monday confirmed the receipt of a firm order for 16 CRJ900 NextGen regional jets, with an option on eight others. The value of the firm order is about US$727 million, although the contract could increase to US$1.12 billion if all options are exercised by the customer.

Air Canada (ACB.B.TO) added 1.26 percent, while Canadian National Railway Company (CNR.TO) edged up 0.94 percent.

Industrial major CAE, Inc. (CAE.TO) gained 1.15 percent after obtaining a series of contracts worth about C$110 million to provide a range of training systems and services for global defense customers.

Pattern Energy Group Inc. (PEG.TO) Wednesday said it acquired 172 megawatts (MW) of owned interest in the 218 MW Panhandle 1 wind project from Pattern Energy Group LP for $124.4 million in cash. The balance of the project has been bought from Pattern Development by three institutional tax equity investors. The stock is yet to be traded this morning.

On the economic front, a report from ADP showed private-sector hiring in the U.S. to have picked up in June, with employers adding 281,000 jobs. The consensus estimate called for an addition of 213,000 jobs following additions of 179,000 jobs in May. This is the biggest monthly increase in employment since November of 2012.

Meanwhile, data released by the U.S. Commerce Department showed factory orders to have declined by a larger than expected 0.5 percent in May. Economists expected a 0.3 percent drop in orders following a 0.7 percent increase in the previous month.

From Europe, U.K. house prices expanded at the fastest pace since 2005 in June with sharp annual growth in London, even as measures taken by the government helped bring down overall mortgage approvals. House price growth accelerated further to 11.8 percent in June, the strongest since January 2005, from 11.1 percent in May, mortgage lender Nationwide said Wednesday. This exceeded the 11.2 percent rise forecast by economists.

Producer prices in the euro area declined at a slower pace, with industrial producer prices in the domestic market dropping 1.0 percent year-on-year in May, slower than April's 1.2 percent decline. This is in line with economists' expectations.